install vinyl siding best siding siding types best siding lindenhurst hardie plank siding round lake heights .. Chicago Drug testing

Is Your Business Profitable?

What's your job profitability? Do you know?

Many business owners are unsure of their profitability at a company or job level. They "think" they are making money because they have a few dollars in their checking account. Having money in your checking account doesn't mean you are profitable. It might simply mean you haven't paid all the bills yet, so you have a little cash. Cash and profit are two different concepts. If you don't know your exact income and expenses for each job and your overall business, then how can you know whether you are making a profit? And, if you aren't profitable, your business won't last long.

Analyze Each Job

Regardless of the size of your business or your industry, profitability is something you should be monitoring on a monthly basis. To determine your profit, you must know how much you make and spend on each job. Expenditures should be tracked for direct labor and material costs on each job. In addition, you should also be tracking overhead costs and allocating them to your various jobs as applicable. There is always going to be some general overhead, but too often dollars are thrown into general overhead, when those dollars could easily be attached to specific jobs.

Intuit's QuickBooks software program has easy-to-use features that allow you to do job-costing for time and materials, so you don't have to worry about having to track it all manually. Rely on tools to help you run your business more efficiently and effectively.

Are you curious how you are doing with job costing measurements? Here are some quick and easy questions to gauge your job costing performance:

1. Do I track each customer's revenue information through a detailed invoice?

2. Do I have a way of breaking down my direct job materials cost by customer?

3. Do I associate all time spent to each job accurately with actual dollar amounts?

4. Do I have access to reports to monitor profitability on each job in a timely manner?

5. Do I have a way to trend the fluctuations in job profitability from job to job, month to month, etc?

If you answered "no" to any of these, then it's time for you to take an objective look at your financial goals. It's time for you to implement a job costing mechanism to help you answer "yes" to all these questions. How can you track your profitability and long-term growth plans if you don't have detail at a job level?

QuickBooks Can Help

Here are some easy ways to utilize QuickBooks effectively to help you with your job-costing process:

1. Set up the QuickBooks Item list so that you'll have both an expense and an income aspect to each of the items. This will allow you to track your costs and your income, and will provide you profit by item.

2. Record your sales through the invoicing or sales receipt process. This will record the income aspects of the items.

3. As you purchase the product or service items, make sure that you utilize the Items tab so that it will record the cost to the appropriate item. In addition, make sure to assign your customer/job information to each line item so that you'll have the costs associated to the appropriate customer/job for job-costing.

4. Utilize the time-tracking mechanism in QuickBooks so that you and your employees can track time by item and customer/job. No dollar value is associated with this time until you actually pay the employees within QuickBooks.

5. QuickBooks has preformatted reports that you can access to have job-costing information right at your fingertips. These are found under the Reporting menu and the Jobs/Time/Mileage option.

6. QuickBooks has the ability to provide reports for any time period you select. This will allow you to have a variety of detail over the growth of your business and to produce trending reports. You can modify the report as needed to meet your needs.

A good accounting professional can help you understand what these reports are telling you, in terms that you can use. Reports alone don't provide value if you don't understand them. So it is key that you understand the reporting information and how you can use that information to assist you in decision-making as you grow your business profitably.

Job-costing is easier when you set-up your accounting/bookkeeping software package and know how to use it. So, challenge yourself today to become more adept at running a financially savvy business through job-costing. Then, you'll know, without a doubt, whether your company is profitable.

Copyright 2005 Pam Newman

Pam helps business owners keep money from slipping through their fingers. She is a Certified Management Accountant, Certified QuickBooks ProAdvisor, and Author of Out of the Red and Unlocking the Secrets of QuickBooks. For more information, you can visit our website at http://www.quickbooksinformation.com

In The News:

Winning in Business - Lessons from Lance Armstrong

Lance Armstrong this week won an unprecedented 7th Tour de... Read More

Carwash Franchisor Case Study

There are only a handful of car wash franchises in... Read More

Small Business Marketing - Clarify Success

When you hear the word "success" does it bring on... Read More

If You Want To Be Remembered...

Send handwritten notes. That applies whether you're a guy or... Read More

Franchise Buyers Lying On Forms

The Federal Trade Commission which governs the franchise industry thru... Read More

Online Search: Small Businesses Level The Playing Field

Seventy percent of US households use the web when shopping... Read More

Why You Need A Virtual Assistant

How much is your time really worth? Is it worth... Read More

Selling Your Business, Entrepreneurs Role

$elling $elling $ellingWhat makes a great sales person? Well, the... Read More

Trailblazer Interview with Diane J. Levin, Partnering Solutions

Today is a Red Letter Day! It's special because today... Read More

Data Loss - Can Your Company Survive? (Most Do Not)

Data. Most people think it is a term relegated to... Read More

How to become a Career Coach for Profit

A career coach could be simply defined your job seeking... Read More

5 Small Business Management Questions to Help Choose Marketing Programs

As small business managers, we juggle limited resources in a... Read More

Pressure Washing Market Niche

Those who are in the pressure washer business should not... Read More

Pressure Washing at Golf Courses

There are many potential niches for pressure washing companies that... Read More

Look Like Sizzle, Be The Steak

You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More

Top 10 Rules for Small Business Success

1. TargetYou are not all things to all people. Decide... Read More

Employee Relations Manual Sample Outline

Most smart entrepreneurs and all large corporations have Employee Relations... Read More

Hosted PBX, Is It Right For You?

"Order Now!" "Your Business Will Fail If You Don't Have... Read More

Change May Be Your Ace in the Hole

Whether it has been thrust upon you by external market... Read More

Routine Maintenance of High Pressure Hot Water Motors

If you run a pressure washer business you need complete... Read More

SBIR - A Nice Add-on Business

If you are a small business and qualify to participate... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Business Success - The 42 Greatest Business Tips

What does it take to grow a business and run... Read More

Why are Reverse Mergers Often the Victims of Short Sellers?

There is a great deal of abuse going on in... Read More

Temporary Staffing Agency: How to Start

The temporary staffing industry continues to expand, with yearly double-digit... Read More

huge lighting savings neptun lighting Pete's produce ..
huge lighting savings neptun lighting Pete's produce ..